For the Q1 2009, the company recorded ophthalmology revenue of $7.5 million, consistent with $7.5 million for Q1 2008. Ophthalmology recurring revenues, comprised of consumable products and service were $4.4 million for the Q1 2009, up 6.7% from $4.2 million for the Q1 2008.
Total Aesthetics revenues were $3.2 million in the Q1 2009 compared with $3.9 million in the Q1 2008, a decrease of 18.9%.
Gross profit for the Q1 2009 was $5.0 million, compared with $4.8 million for the Q1 2008. Gross margins were 47.0% and 41.9% for the Q1 2009 and 2008, respectively, an improvement of 5.1% of revenues. Operating expenses for the first quarter 2009 were $4.7 million compared with $5.5 million for 2008, or 43.6% and 48.3% of revenues, respectively.
“Returning to profitability given the current distressed economic environment represents a major accomplishment for the company,” stated Theodore A. Boutacoff, president and chief executive officer. “This is the first quarter that we have been profitable on an operating income level since the fourth quarter of 2005. Keys to achieving profitability during the quarter were improvement in our gross margins to 47% of revenues and managing our operating expenses exceptionally well.
“Our profitable performance during the first quarter reflects steady progress towards successfully implementing our strategic objectives,” Boutacoff continued, “which are: continuing to manage the Company to be cash flow positive while driving profitability; putting the majority of our focus on our Ophthalmology business and looking to invest in growth opportunities for Ophthalmology.
“During the first quarter our financial strength continued to improve with $0.9 million in cash generated from operations which allowed us to increase our cash balance and at the same time start reducing our bank debt; as a result we now have cash in excess of our debt,” continued Boutacoff. “We believe our strategy of continuing to focus on our Ophthalmology business is bearing fruit. Our Ophthalmology recurring revenues have grown quarter over comparable quarter even in these tough times. Furthermore, we announced that the first shipment of the IQ 577, our high-power, true yellow (577 nm wavelength) laser system for use by ophthalmologists was shipped in April for commercial sale, and we see the addition of the IQ 577 to our Ophthalmology product line as reinforcement of the IRIDEX brand for high quality technically advanced Ophthalmology products.”
As of April 4, 2009, the company had cash and cash equivalents of $5.7 million, up from $5.3 million in January 3, 2009, while bank debt was $5.5 million as of April 4, 2009, down from $6.0 million as of January 3, 2009.
IRIDEX is a provider of therapeutic based laser systems, consumable laser probes and delivery devices used to treat eye diseases in ophthalmology and skin conditions in the aesthetics market.
